CNBC Tech
Why data centers could be the next big market for catastrophe bonds
Saturday, September 12, 2026
Data center operators are exploring catastrophe bonds to transfer risk related to potential disasters such as fires, flooding, or power failures to capital markets investors. CAT bonds are debt instruments that transfer specified risks from the issuer to bondholders, who receive higher yields in exchange for bearing those risks. Market participants indicated a dedicated data center catastrophe bond could be issued within 12 to 18 months.
Original reporting: https://www.cnbc.com/2026/09/12/ai-data-centers-catastrophe-bonds-insurance.html